Good morning, ladies and gentlemen, and welcome to the Vertex Energy second quarter 2022 earnings call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Noel Ryan. Thank you, Ali, and good morning and welcome to Vertex Energy second quarter 2022 results conference call. Leading the call today are our chairman and CEO, Ben Cowart, CFO, Chris Carlson, Chief Strategy Officer, Alvaro Ruiz, and Chief Operating Officer, James Rhame. We issued a press release before the market opened this morning detailing our recent operational and financial results. I'd like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements which by their nature are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For discussion of some of the risk factors that could cause actual results to differ, please refer to the Risk Factors section of Vertex Energy's latest annual and quarterly filings with the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during our call in the press release issued today. Today's call will begin with remarks from Ben Cowart, followed by a financial review from Chris Carlson. At the conclusion of these prepared remarks, we'll open the line for questions. With that, I'll turn the call over to Ben. Thank you, Noel. Good morning. Welcome to today's call. We'll begin the call with a high-level overview of our second quarter results, which include a full quarter of contributions from the Mobile Refinery, which we assumed ownership as of April 1st. During a volatile period for the broader energy complex, we generated record consolidated second-quarter adjusted EBITDA of $71.3 million, supported mainly by contributions from our recently acquired Mobile Refinery, which generated $63.6 million in standalone adjusted EBITDA during the period. Our legacy UMO collection and re-refining assets also performed exceptionally well in the period, with Marrero and Heartland both operating near capacity during the second quarter. Product spreads and sales volumes for the legacy business have continued to outperform expectations. Since acquiring the Mobile Refinery, we've experienced strong demand for conventional fuels in the local market. At the same time, recent decisions by competitors to reduce refining capacity in our regional markets have contributed to tightness in product supply, resulting in elevated refined product margins. We believe a similar narrative is playing out across many areas of the country, given a structural shortage of domestic refining capacity. To that end, according to the EIA, domestic inventories of both distillate and gasoline remain well below the trailing five-year average, while demand remains healthy, implying further potential upside to product cracks. During the second quarter, Mobile operated at 96% of operable capacity, producing just under 72,000 barrels per day, which was ahead of our guidance for between 69,000 and 70,000 barrels per day. Total gross profit per barrel, excluding a realized hedging loss and inventory adjustments, was more than $23 per barrel in the second quarter or approximately 51% of the Benchmark 2-1-1 Gulf Coast crack spread in the period. Throughout the second quarter, we processed a combination of WTI, LLS, and local light sweet crudes. Total production of finished high-value light products, which includes gasoline, distillate, and jet fuel, represented approximately 70% of the total production in the second quarter. During July, market conditions remained favorable, supported by seasonal strength for conventional fuels. While the 2-1-1 has declined sequentially versus second-quarter levels, it remains more than 100% above the third quarter in 2021. During the third quarter, we intend to operate Mobile at between 72,000 and 74,000 barrels per day, positioning us to capitalize on continued strengths in the market. Turning now to a discussion of the ongoing renewable diesel project at the Mobile Refinery. During the second quarter, we began construction of the foundations and fabrication of pipe related to the project. While the supply chain remains challenging, our team continues to successfully navigate these issues, having placed orders on all major long-lead equipment earlier in the year. As before, we expect the total project cost to be in the range of $90 million-$100 million, funded entirely through existing cash on hand and cash flow from operations. To date, we have committed $43 million to the project and are trending within budget at this time. In October 2022, we expect to engineer a planned shutdown of a hydrocracker at the Mobile Refinery as we move forward. We believe this planned unit shutdown will have no impact on crude oil throughput rates during the fourth quarter of 2022. Consistent with our previous guidance, initial renewable diesel production volumes are expected to come on stream by first quarter of 2023. Before I turn the call over to Chris, allow me to share a few comments around our reported results this quarter. No question, the second quarter had some noise in it, including both realized and unrealized hedge losses. Concurrently with the acquisition of the refinery, we made the decision to enter into a series of crack spread and inventory hedges designed to mitigate our downside risk while locking in 50% of our planned production during Q2 and Q3 at what remained at historically elevated levels. It was a safe bet, albeit one that capped our upside during a period when spreads moved higher. With a full quarter at Mobile behind us, together with the expectations for a prolonged period of elevated refined product margins, we have concurrently chosen not to extend our hedging program past the third quarter of 2022, positioning us to take full advantage of the spot market beginning in the fourth quarter of this year. During a period of transition, our people executed on plan, ensuring a successful integration of the Mobile Refinery while continuing to drive value creation across our legacy business. I'm exceptionally proud of the combined efforts of our entire team, each of whom played an integral role in our record second quarter results. Looking ahead, we will continue to advance our strategic plan with an emphasis on, one, ensuring safe, reliable operations. Two, investing organically in high-value renewable fuel opportunities. Three, driving superior cash flow conversion, particularly as we exit a CapEx-heavy period leading up to the completion of the RD conversion. Four, continuing to pursue a balanced capital deployment strategy. Long term, we intend to use Vertex as a platform upon which to create an energy transition of scale. One focused on delivering next generation decarbonization solutions. We believe the biofuel sector remains an attractive opportunity, one where we can become a leading regional producer of renewable diesel and over time, sustainable aviation fuels. With the pending passage of the Inflation Reduction Act, we see a positive trend towards the multiyear extension of tax incentives such as the Blenders Tax Credit that will support future visibility of project economics. We also see a trend towards accelerated demand for renewable fuels from commercial and industrial customers as companies seek to further align their business priorities with environmental responsibility. In summary, it's an exciting time for us here at Vertex. We appreciate the continued support of our customers, shareholders and partners, and look forward to building on the momentum evident across our business. With that, I'll hand the call over to Chris. Thanks, Ben, and welcome to those joining us on the call today. For the three months ended June 30th, 2022, Vertex reported a net loss of $63.8 million, versus a net loss of $16 million in the second quarter of 2021. The second quarter net loss includes a $46.9 million unrealized commodity derivative loss, a $23.2 million loss on an intermediation agreement due to backwardation, a $46.1 million realized commodity derivative loss, together with $11.6 million in non-recurring transaction and other non-operating expenses. We reported record adjusted EBITDA of $71.3 million in the second quarter of 2022 versus $4 million in the prior year period. On a standalone basis, the Mobile Refinery generated $63.6 million. Second quarter results benefited from a combination of strong operational reliability, elevated refined product margins, and robust demand for conventional fuels, including the first full quarter of financial contributions from the Mobile Refinery acquisition, which closed on April 1st, 2022. As of June 30th, 2022, the company had total cash, including restricted cash of $97.9 million versus $36.1 million at the end of second quarter of 2021. Vertex had total net debt outstanding of $299 million at the end of the second quarter of 2022, including lease finance obligations. The ratio of net debt to trailing 12-month adjusted EBITDA was 2.4x as of June 30th, 2022, which includes only one quarter of EBITDA contribution from the Mobile Refinery. Back on November 1st, 2021, we issued $155 million in 6.25% convertible notes due 2027, implying underlying shares of 26.3 million on full conversion. These notes are callable by Vertex on or after October 6, 2024, if the stock price exceeds 130% of the conversion price or $7.66 per share. During the second quarter, note holders voluntarily converted approximately $60 million of their notes into approximately 10.2 million shares of Vertex common stock, thereby reducing the outstanding amount of the convertible note from $155 million to $95 million. In addition, this conversion had a non-cash impact to the income statement in the amount of $41 million due to an acceleration of the OID and interest expense. Also, during the quarter, we upsized our term loan from $125 million to $165 million. Using the incremental $40 million in proceeds to repurchase Tensile Capital's outstanding 65% ownership within certain legacy assets, including the Heartland Refinery and Myrtle Grove site. At this juncture, Vertex remains the sole owner and operator of all legacy assets, further simplifying the capital structure. Today, we introduce financial and operational guidance for the third quarter 2022. Going forward, we expect to provide a similar level of guidance on subsequent quarterly calls. All guidance is current as of the time provided and is subject to change. All prior financial guidance should no longer be relied upon. For the third quarter 2022, we currently anticipate the following. Total throughput of between 72,000 and 74,000 barrels per day at the Mobile Refinery and direct operating expense per barrel of between $3.50 and $3.75 at the Mobile Refinery, and consolidated total capital expenditures of between $30 million and $35 million. For the full year 2022, we currently anticipate consolidated total capital expenditures of between $115 million and $120 million. With that, we will open the line for questions. Operator? Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. Thank you. The first question is coming from Manav Gupta with Credit Suisse. Please pose your question. Hey, guys. Obviously, a lot of moving items and a lot of noise in 2Q. A lot of that obviously relates to various kinds of hedges that you did put in place. I'm just trying to understand as we look at 3Q, should we think about these kind of losses replicating themselves in 3Q or should they be lower? How should we think about the losses associated with hedging in the third quarter at this point of time? Yeah. Thank you, Manav. I'll let Chris kind of follow in behind me if he's got something additional to add. Obviously, as you indicated, the hedging that we put on the production—half the production has created a lot of complexity in our second quarter earnings. I think the number, you know, for the second quarter is around $90 million impact to what, you know, you see in our financial results. That includes both the hedge loss that we accounted for in the second quarter and the accrual for the third quarter. We have seen an improvement in that hedge position for the third quarter, probably of $23 million. We anticipate, you know, that continuing to follow the market. Trying to forecast the outcome for the third quarter as it relates to those hedges is very difficult depending on what the quarter outcome is. I can say, you know, to date, we definitely are in a better situation. Timing was not good. Hindsight being 20/20, you know, it's easy to look back and say, "Well, we shouldn't have, you know, hedged those crack spreads like we did." I take responsibility for that as we went into a very complex acquisition, a transition that was a monumental challenge that we knew we had to be prepared to do. We had a long-term strategy and still do for the site to lead us to an energy transition platform by converting the hydrocracker to renewable fuels. We made the decision early, you know, at the end of March, that upon closing, we would take a 25% premium over a five-year historical crack spread, put it in the bank, more or less, you know, cut the purchase of the refinery and set us up safely for a long-term strategy as a company. You know, at that time, there was no real precedent for the kind of crack spreads that we've seen develop over the second quarter. It was amazing. You know, love to have the money in the bank, but I'm very thankful for the platform that we have, the transition with the business, and just how well everything has executed. You know, it certainly shows long term the cash flow potential of the business. We don't look back. We're not gonna be prisoner of the moment and try to figure that out. I know it's a long answer, but I know the hedging has been a material, you know, noise in this quarter, and I think it owes a good explanation. Thank you for the question. You know, a quick follow-up, obviously here, sir, is, you know, last quarter, you did have a 2022 guidance. So as we go in the year in 2023, how should we think about the earnings power of Vertex? First, obviously, 2022 basically will be refining. Then 2023, you obviously will have your renewable diesel project up and running. So how should we think of some kind of, you know, EBITDA that you think you can achieve in 2022 and 2023? I'll leave it there. Thank you. Yeah. Thank you. Again, you know, if we didn't have the crack spread for the second, third quarter, or actually for the second quarter, we would've been looking at another $90 million of cash flow and EBITDA, you know, to be talking about. That's the true business. That's really when we look ahead into 2023, you know, if the shortage of refining capacity continues to prevail, like we believe it will, then our conventional side of this business will continue to perform extremely well. The on time, on plan renewable diesel production coming into 2023 will bring a lot of new cash flow, you know, to boot. We're very positive about 2023 EBITDA. As far as guidance goes, what we're trying to do is just follow today, you know, the way the industry provides guidance. You know, obviously when you try to forecast EBITDA and you've got, you know, a lot of volatility in the market like we just seen, you know, it creates confusion. We don't wanna do that going forward. We did provide some straight guidance at the end of our call last quarter, only to provide the market with just an idea of the power the asset has to generate cash. With that in mind, you know, we will be providing, you know, more measurable per barrel guidance, using our operating cost and you know, we'll let the market, you know, figure out what the forward, you know, pricing and strips look like as we go forward. Thank you guys. Thank you. Our next question is coming from Noah Kaye with Oppenheimer. Please pose your question. All right. Great. So to follow up on your response around the derivatives position, Ben, I just want to clarify, make sure we understand. You're saying that as of today, number one, you already accrued for the derivatives loss in 3Q, and with crack spread starting to come down, you'd be in a position if nothing changed from today, to recognize something to the tune of a $20 million derivative gain in the third quarter? And would that be an unrealized or a realized gain? Yeah, that's correct, Noah. It would be a realized gain in the third quarter. All right. That's very helpful. So outside of the derivatives, you know, is around 50% capture of the spread the right level to be thinking about going forward? Was it higher or lower than you expected in 2Q? Anything to call out there? How do we think about the run rate going forward? Yeah. I think the capture was around 51% of the 2-1-1 crack spread. You know, again, it depends on how the market plays out and the premiums in the crack spread. We do believe that diesel is in a material short position with no real answers, in our opinion, as far as how that plays out. Our asset is a diesel-heavy asset, so we're gonna benefit, you know, long-term by that factor. So, you know, trying to figure out where these markets are gonna end up going is a guess, right? We do believe that all the market conditions are in our favor for the asset. Okay. On the renewable diesel project, you mentioned the long lead times. It seems like almost every major construction project these days sees some push out, you know, for equipment. Long lead times seem to get a little bit longer. I guess, what's your confidence level at this point in being able to, you know, stand up the project by 1Q 2023? You know, is there anything that, you know, we can point to in terms of, you know, key equipment in process of delivery, anything like that? I mean, how much visibility do you have into the key equipment? Yeah. Noah, this is James Rhame. Let me answer that or attempt to answer it. At this stage, we do not see anything that is causing us concern. However, at the engineered equipment, we have our eyes on every bit of it, and that seems to be hitting right on schedule as we continue to watch it. Right now, the areas of concern for us are more in the bulk equipment, and much of this is specialty piping, specialty valves. As I stated, we don't see anything that is material as of yet, but we'll continue to watch this. Unfortunately, you may not know till it doesn't show up, and I am gonna be very careful about making sure I don't take down the OFH until all the equipment's available and we're ready to go. We're on schedule. Probably the two elements of risk that we have on this project is not just, the supply chain that we just discussed, but also, the impact of COVID. In that area is starting to impact us a little bit with some of our engineering resources, but we're managing around that also. More to come. Okay, thanks. Maybe just sneak one more in here. You know, obviously the UMO business has continued to outperform, you know, really expectations and, you know, certainly elevated spreads driving that. I see it's still classified as current asset held for sale. Can you just update us a little bit on your thinking around the business, current levels of interest from potential buyers, how you are thinking about that strategic element of the business today? Thank you. Yeah. Yeah, we hope to finish up this quarter with the work that, you know, has been in play just coming out of the last, you know, several months of discussion. You know, accounting-wise, we felt like it's necessary to hold everything as it is and have more clarity in the next quarter is our goal. All of that is just to manage our fiduciary responsibility to tender the interest that has come in, you know, in several parts of the business. That's a process. I don't think it's you know until that's resolved and put to bed then we've been advised to keep this in a hold pattern for now. Understood. The business is performing really well, so hopefully that gives you- Yes. Some flexibility. All right. Yeah. Absolutely. I'll jump back in queue. Thanks. Thank you. Our next question is from Eric Stine with Craig-Hallum. Please pose your question. Hi, everyone. Good morning. Morning, Eric. Morning. Morning. Can you just help me out here a little bit? I mean, yes, lots of noise in the quarter, and yes, you did hedge, but you also guided with that hedge in place. For the, you know, the naked portion of your production, spreads went higher. I'm just trying to figure out why such a big delta between your guidance at the midpoint of $120 million and your reported number, and I know in your deck you give the bridge, but, you know, just if you could help me out, that would be great because something. You know, it just seems like something's missing here. Yeah. Good question, and I believe in slide seven, the bridge kind of breaks that down. The key is the spread impact. At the time you're looking forward on a forward strip with pricing that you're using, that's the only way to provide a guidance. When you reconcile that back, you're gonna be $35 million short of market expectations at the point in, you know, which we were having that discussion. Second, we had some minor yield adjustments or, you know, inside the refinery as we took the refinery over that we had assumed would play out that were not actual. That was, you know, put that on us, I guess. Then you just have inventory impact. That would be the gain in inventory from the beginning of the quarter to the end of the quarter. We ended up with a lot of additional finished product that did not get to market, you know, right at the quarter. This is a lumpy business, you know, when we load out cargos, vessels, et cetera, you know, you're gonna have inventory build, you know, for those events. You know, forecasting when that sale would take place, you know, really reflects the $13 million. Nothing lost. The margin, the cost has already been paid to produce that product. We just, you know, if you look at our balance sheet, you can see a significant gain, you know, in inventory. That's really, you know, it. I think we, you know, the market played out really well. You know, I think that, you know, it just didn't play out like everybody thought it would when you were looking across the future quarter. That's as good as you can do when you're trying to provide some kind of feel and direction. When we bought the refinery, there was really no way to, you know, give the market an idea of just, you know, how strong of a, you know, asset and its ability to produce cash flow. That's... Okay. I mean, the yield impact that, I mean, it sounds like that's something that's rectified. The inventory impact, you could have that any quarter. I mean, given its timing, you're gonna make that $13.3 million back up in the third quarter, and then we'll see what happens at the end of the third quarter, if I'm understanding it correctly. You're still, you know, there's about a $30 million difference. That's, I guess. Maybe it's something I just need to take offline, but I mean, that was already kinda, you knew you were gonna be $35 million short, right, when you guided. I'm just trying to figure out the delta. If it's something we need to take offline, talk more in depth about, you know, we can certainly do that. That's the piece I'm missing. Yeah, let me just say it again. At the point in which we were guiding, we were using forward pricing. When you reconcile the forward pricing that was in hand when the guidance was provided to the actual pricing that played out, you're gonna get more than a $35 million difference in outcome. Does that make sense? Yeah, maybe. We can talk about this offline and dig into that a little more. Maybe, you know, I know previously, and this is kind of fluid. I mean, it's your first quarter of operating it, but, you know, thinking about it as the 3-1-2 crack. Now it's the 2-1-1. You know, just maybe thoughts on that. Is that something where, you know, you think it's the 2-1-1, you know, permanently going forward? Or is it something that you can, you know, switch? I mean, not on a dime, but can switch back and forth, you know, based on the market? Yeah, this is James. Let me try to answer that. We think the 2-1-1 is a better way to reflect its operation today. What will change in the future as the OFH comes down and is converted renewable diesel, the crack looking forward, I really don't have a great picture yet 'cause I'm not sure how to roll in the renewable diesel. That's more of a, you know, that's a different spread, so we'll have to communicate that consistently. What you will see occurs in the fourth quarter of this year as the OFH comes down, we do lose some of the diesel make that occurs, and we'll be selling the product. What is fed to the OFH will now go out in the product market. That spread will change going forward, and we'll provide guidance on that when we get to the next quarter as we continue to look at those. Yeah, your net diesel make with the renewable and what you lose on OFH are gonna be higher. Right? That's correct. It will be a heavy on diesel, and then your feed you indicate is the vacuum gas oil, which is typically a 70% gasoline, 30% diesel yield if it goes to a cat cracker. If it goes into a hydrocracker, you know, for feed for base oils or distillates, then those yields are more. The nice thing is that there's a strong premium on the vacuum gas oil today that is a result of a shortage of vacuum gas oil, you know, to the refiners in the Gulf that was dependent on barrels from Russia that aren't coming to the U.S. I think timing is really good, you know, for what we're doing and the product that we'll have for that market. Okay, I'll take the rest offline. Thanks. All right. Thank you. Thank you. Thank you. Our next question is from Amit Dayal with H.C. Wainwright. Sir, please pose your question. Thank you. Good morning, everyone. Ben, I guess my key question is, you know, what is preventing you from sort of establishing guidance for 2022? It looks like you have some visibility on the crack spreads, you know how you are hedged, you know, for the current environment. Is there anything that you don't have some confidence in that you are, you know, not sort of, you know, establishing guidance for at least 2022? No, that's a good question, Amit. We are very confident on our production rates. We're very confident on our operating costs. We've provided that those are your key drivers. The difficulty in trying to pin an EBITDA number down is the volatility in the energy markets, the product pricing and these crack spreads. We wanna make sure that we are leaving that, you know, to the market and, you know, to make sure that we're still, I guess, educating ourselves and getting used to, you know, the volatility that may be out there. It's been extremely volatile in the second quarter and so far in the third quarter the same. Trying to figure that out is somewhat of a challenge and we are following, you know, to the best of our ability, what the industry, you know, you know, the way they treat guidance on a go-forward basis, just to kind of stay in the group and not try to be smarter than those that have already been down that road, I guess is my best answer. Okay. For the fourth quarter, it looks like you are not in any hedges yet. Is that something that you might do if, you know, the macro environment changes? No, it's a very good question. As I said in our remarks, we're currently not hedging the fourth quarter. We would have you know put on some hedges if we were following the same strategy that we started with at the close of the refinery. We have some precedent now. We have some view on the markets. We do believe that we've got an opportunity going forward. We're not you know that concerned about the exposure to the cracks. We do have inventory hedges on everything, so we're not putting our inventory at risk at all. We believe that it's better for us to, you know, provide the exposure, you know, in the decisions that we're making. We've now built a hedging team that is, you know, managing, you know, our hedging positions. They, you know, will continue to make certain recommendations, you know, to our risk committee that we can execute at any time if we see opportunities that present themselves. That's how we're gonna move forward. Then maybe just last one again around the same topic. You know, like, we've almost, you know, 1.5 months into the third quarter now. How is the hedging and the spread environment sort of playing out for you so far? I mean, you know, are the results a little better than what you've seen for the second quarter? Just any color on, you know, how, you know, the situation is as of now would be also probably helpful for investors to get clarity on. Yeah. I think we're gonna continue seeing volatility in the third quarter, so it's hard to define how that is gonna ultimately play out. As we talked about earlier, we did accrue for, you know, the adjustment, the hedge loss in the third quarter. That was part of our second quarter numbers. To date, you know, we're $23 million better so far in this quarter than what we had planned and made adjustments for. We believe that cracks specifically around heating oil is gonna improve. That's our assumption. You know, we think the quarter's gonna be, you know, better and should outweigh what we've seen in the second quarter. Understood. Thank you. That's all I have, Ben. Appreciate it. Thank you, Amit Dayal. Thank you. Our next question is coming from Michael Hoffman with Stifel. Please pose your question. Hey, gang. I don't wanna belabor, but I do wanna ask for some clarity, help this poor dumb farm kid to understand. On the spread conversation, if I understand it correctly, at the time, I'm making numbers up, the forward curve looked like $1. At the end of the day, it was $0.65. You had a 35% difference, and there's your $35 million. That's what we're playing with, and that's the challenge you have on trying to do guidance, is those spreads are moving around still given the world's volatility around the energy market. Did I get that right? Yeah. That's a good way to lay it out there. That's exactly right. Okay. All right. What direction are those spreads moving relative to 2Q at the moment in the aggregate? Are they up, down, flat, sideways? What do they look like? No. I think they're trending down as an aggregate. What we anticipate is, you know, a firmer and more robust diesel crack as we, you know, go through the third quarter on into the fourth quarter. But at the moment, they're trending down. If I start with a baseline of $63 million + $13 million for inventory, right? The inventory was a timing issue. That's starting with a baseline of sort of $79 million, and then I've got spread pressure. It's a headwind. Is that the right way to think? That's mentally where I ought to be starting? Yep. The only thing I would add is the increased production rates that we've provided in this call. We, you know, guided to 70,000 barrels a day, and we're 72,000-74,000 for the third quarter. The refinery is certainly doing their part. Those are the two major puts and takes are the spread's narrowing and but I got better output. That's right. Okay. I'm still starting round numbers around $79 million. That's the right way to think is that opening bid on the quarter. $63 million at the end plus the $13 million in inventory. Now play with that. Yeah. No, I think that's a good way to think about it. Okay. All right. I wanna ask about black oil from a different perspective. It looks like it's now on a pace to do more like $28 million-$32 million for the year versus I kinda came into the year thinking it was gonna be $25 million. Is that the right way to think about the run rate of activity, or is there a major turnaround coming that I need to account for? No, I think that's, directionally, you're in a good ZIP code. I mean. Yeah The business in general has just done really well. You know, team's done really well. Spreads are good. We continue to grow our collections. Really nothing backing up, you know, related to the legacy asset. It's obviously, you know, we have to provide the color on the bigger picture with, you know, taking on the mobile refinery. We're very pleased with where the business is and where we're at in the third quarter going into the fourth quarter on the legacy business. Okay. Help me understand if I get the accounting issues of you maintaining disc ops. My assumption is that you would still sell this business, whether it was disc ops or continuing ops. You would be a seller of the assets and concentrate your energies on Mobile, and that's an ongoing process. If that's true, I'm a little confused. Why buy Heartland back in? I get buying Myrtle Grove, that optionality of what you might do there, but why are you buying Heartland back in? Yeah, we wanna clean our capital structure up. We believe in our legacy business as part of our long-term decarbonization strategy. It's, you know, it's the foundation of what we're doing in Mobile as we transition the hydrocracker over to renewables and bring renewables into, you know, our focus, our recycling and reclamation and the work we've done on our legacy business gives us, you know, a long tenure when it comes to energy transition. We wanna keep that as part of, you know, our overall brand strategy and what we aspire to be in the energy space, more of energy transition company than that of just the independent refiner. Okay, are you sending a message that you're pulling this sale off the market then? I'm sending a message that, you know, we love our legacy business as part of our strategy, and we've got work to complete before we can make an accounting decision on how that comes back into the picture. We gotta get that work done, and then go from there. Okay. In the cash flow statement is the $93.745 million hedge commodity loss. Then, sitting here today, based on the comment you made, if the quarter were to have ended for 3Q, that number would be $23 million smaller. That's the message you're sending, right? Is that. Am I understanding the accounting right? Like the. Yes, that's correct. Okay. That's right. Okay. James, on the long lead items, I mean, you're not shutting down in October unless all that stuff shows up. That's part of your confidence is you believe you can do your shutdown, and so far, nobody's giving you any indication you're not gonna be able to do the shutdown 'cause everything's supposed to show up when it's supposed to. That's it. You are absolutely correct. Okay. What part of the world is this stuff coming from? Most of it's domestic. At this stage, it's really the specialty pipes and valves. Most of the engineered equipment we've got good line of sight on, but it starts becoming the bulks. Just to give you a rough number, and I know I'm probably getting in the details, you know, we have a little over 180 tie-ins that have to occur for this project to be successful. It's all of those tie-ins, and many of that is specialty pipes inside the unit and OSBL also. Okay. Is their issue? They have a certain potential issue, could be supply chain, or it's just that demand's really strong and they're making things as fast as they can make them. When they get to you, they're gonna get them made and sold and shipped. That's our understanding. Their ability to make, and they're running most of the things you see we're doing. We're going the extra mile trying to help and talking with them, what can we do to help them? It's also their ability to get material. Okay. All right. Thanks. Thank you. Gentlemen, as there appear to be no further questions in the queue, I will hand it back to management for any closing comments you'd like to finish with. Okay. Ali, thank you, and thank you, everybody on the call. It's certainly a monumental quarter, one that takes a lot of work to digest. We get it. Very thankful for the future that we hold in our hand, the cash and the cash generation of this asset and the business. What we have going forward, as far as our strategy to unfold for the market, the challenge that our team faced in transitioning a very large piece of business into the company, I can't underscore more, you know, their hard work and just the fact we delivered, you know, everything operationally in this quarter, both you know, with the new team and the new business, as well as our legacy team did their job. You know, I'd love to have the $90 million back in our bank account from the hedging, but I personally stand tall on that decision with the plan you know we have for the future and just you know managing our balance sheet and the full exposure to the upside to our shareholders. That's you know been a journey for us to be able to get here and deliver on all the things that we were able to accomplish in the very first quarter without dropping the ball and without having any material setback in doing so. Thank you, everybody, for the support, and we look forward to our third quarter call for sure, and you know, continued information that we hope to provide to the market between now and then. Thank you. Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your lines at this time, and have a wonderful day. Thank you for your participation.